Cryptocurrency exchange Huobi Global is seeking a license in Hong Kong, as the Chinese special administrative region considers new licensing and regulatory measures to allow it to serve retail clients.
The new framework requires cryptocurrency exchanges to register with Hong Kong’s Securities and Futures Commission (SFC), which will allow exchanges to expand their services to the city. Huobi is also planning to launch a new exchange called Huobi Hong Kong, which will focus on institutions and high-net-worth individuals, according to Justin Sun’s Twitter post. The SFC recently launched a public consultation on new Hong Kong licensing proposals, which will come into effect in June. News of the expected change led financial service providers to line up to join the new expanded system in December.
In an interview with Nikkei Asia, Sun said that Huobi may increase the number of its employees in Hong Kong from 50 to 200 this year. Hong Kong's crypto-friendly stance and the possibility of retail sales are driving the expansion, he said. Huobi announced a 20 percent layoff in January, describing it as part of a restructuring of the company after Sun took over in October. The exchange announced in February that it would shut down its Huobi Cloud Wallet in May due to “strategic and product adjustments.”
According to Nikkei Asia, Huobi is also considering moving its headquarters from Singapore to Hong Kong.
Huobi is also expanding its services in other regions. It announced in January that it would launch a Visa-backed crypto-to-fiat debit card that Huobi customers residing in the European Economic Area will be able to use globally. The card is expected to be available in the second quarter of this year.
